During 2015, Litten Company purchased trading securities as a short-term investment. The costs of the securities and their fair values on December 31, 2015, follow:

Security Cost Fair Value

(Dec. 31, 2015)

A $65,000 $75,000

B 100,000 54,000

C 220,000 226,000

At the beginning of 2015, Litten had a zero balance in the marker adjustment trading securities account. Before any adjustments related to these trading securities, Litten had net income of $300,000.

What is net income after making any necessary trading security adjustments? (Ignore income taxes.)

What would net income be if the fair value of security B were $95,000?